Another New York state bill would increase the individual income tax rate for millionaires to help fund public education.
Under legislation (A. 10450/S. 8329) introduced May 18, the top state individual income tax rate would increase to a flat tax rate of 10.9 percent for income over $5 million. The current top rate is 8.82 percent for income exceeding $1,077,550.
The proposed top rate would apply "regardless of whether the filer is married filing jointly, a surviving spouse, a head of household, married filing separately, or unmarried," according to the bill summary.
Under the bill, 85 percent of the revenue generated by the rate increase would be dedicated to the state lottery fund. The remaining 15 percent of the generated revenue would be placed in a new supplemental public higher education fund that would be distributed to the State University of New York and the City University of New York.
The bill would also disallow lowering funding put in place in the state budget for public schools and for SUNY and CUNY.
According to the memorandum in support of the bill, the COVID-19 pandemic has placed a financial burden on low- and middle-income New Yorkers and this legislation would ensure that the sacrifices are made by those who can afford it.
The memorandum also noted the importance of “adequate funding” for public schools, especially “in the face of likely budget reductions” as a result of the pandemic.
“Now is not the time to cut education, but to ensure that New York's students can recover educationally and emotionally from the toll of the pandemic,” according to the memo.
A. 10450, sponsored by Assembly member Deborah Glick (D), was referred to the Ways and Means Committee and would take effect immediately if enacted. Glick is a member of the committee.
Similar legislation (A. 10363) was introduced April 29 that would increase the top income tax rate to 11.82 percent for taxpayers earning $100 million or more. That bill is estimated to bring in more than $4.53 billion annually to help fund public schools.
Another bill (A. 10419), introduced May 11, also proposed establishing higher tax brackets for New York City high earners to help close the budget gap.